Behind every successful business lays a strong foundation of market research. This is a key step which is often deprioritized by businesses, not knowing the value it possess to the business growth in the long term. Market research and competitor analysis is the action of gathering, analysing and interpreting external market data to help businesses make wise decisions.
The adoption of Omnilytics dashboard helps brands in conducting a thorough market analysis and competitor research incorporating both internal and external data. The forward strategy could be formulated effectively to develop commercial decision making.
8 ways to conduct external market research
Here are the recommended steps for brands to conduct market research and competitor analysis using the dashboard:-
- To identify primary competitors
- To identify secondary competitors
- To review competitors’ assortment mix strategy
- To review competitors’ pricing strategy
- To review competitors’ online distribution channels presence and performance
- To review competitors’ discount and promotion strategy
- To review competitors’ strengths and weaknesses
- To analyse competitors’ market positioning and performance
3 ways to conduct internal market research
In addition, the research has to be supplemented with internal information such as:-
1. Develop a SWOT Analysis
SWOT analysis is separated into four components: strength, weakness, opportunities, and threats. These four components can be done by peeling layers of a business to identify underlying factors that can guide strategic decision making. For example, here is how a SWOT analysis can look like for a multichannel retailer:
2. Identify own brand Unique Selling Point (USP)
As the name suggests, a unique selling point is a distinctive factor of your brand that allows you to stand out from the rest. For example, the USP for Revolve is that they carry exclusive designer brands bought directly from the merchandiser.
3. Develop own brand market positioning and perceptual map
This tool is used to identify how a product or service sits in a customer’s mind or how it differs from its competitors. An example of brand market positioning and perceptual map for a multichannel retailer can look like this:
The two key analysis reports, SWOT Analysis and Competitor Analysis could be formulated by going through the steps highlighted above, incorporating both internal and external data. Opportunities and risks are easily identified from both reports to further formulate forward strategy plan tapping into these white spots.
Having complementary data insights from both internal and external platforms allows brands to:-
- Establish a proactive strategy planning team
- Achieve market sensitivity in a shorter time period
- Cost-saving. It helps businesses to cut back monetary spending on physical market visits, especially overseas market trips.
- Time-saving. It helps businesses to cut back time spent on competitor shopping and physical market visits.
Market research and competitor analysis are vital when developing your brand forward strategy. The combination of internal and external data insights provides greater visibility on market conditions in terms of brand positioning and performance, to better understand customer behavior and identify gaps between brand offerings and customer expectations. In summary, market analysis is one of the vital components to help businesses in gathering useful information and making wise business decisions.
We hope you found this article helpful! If you have any questions or would like to explore the Omnilytics dashboard further, feel free to reach out to your respective Client Success Manager at firstname.lastname@example.org.